The Financial Access Limitations and Investment Opportunities of Real Estate Development in Ethiopia

Abstract

In countries like Ethiopia housing is a basic and most important need while to fulfill this basic need finance is a major constrain. Due to this housing in developing countries become the core aspect in order to build houses. The real estate sector alone in Ethiopia become an attractive sector since the mid 90s after the country introduced market oriented economy. The sector is passing with opportunities and threats for the real estate developer and the buyers too. The poor mortgage system and government’s policy on lad are the major problems. This study conducted to assess the financial limitations and investment opportunities in real estate sector. The researchers used descriptive method and questionnaires were distributed for potential house buyers in order to know their intention about finance from their side and secondary data were also collected and presented in the form of literature. Access to finance showed by their response and low level of loan provision is stated in the result. Also investment opportunities are viable for investors as the country in developing momentum in the last two decades and open the sector for foreign investors. Low labor cost, raw land and other resources are the factors that attract investors spend their money in Ethiopia. Whereas the political instability and ethnic conflicts in major investment areas since the beginning of 2016 stated as threats in Ethiopia.